Here are some of the highlights from the ASX:

RBA announcement

The Reserve Bank of Australia has decided to double its quantitative easing program to $200 billion. The central bank also decided to keep the official interest rate at just 0.1%.

Further to that, the RBA decided to say that it's not expecting to increase interest rates until 2024 at the earliest.

This had the effect of boosting the share prices of many different industries.

The Afterpay Ltd (ASX: APT) share price was one of the best performers in the ASX 200, rising by almost 8%.

Property shares got a big boost. The REA Group Limited (ASX: REA) share price went up around 5%, the Domain Holdings Australia Ltd (ASX: DHG) share price grew 2.6% and the Brickworks Limited (ASX: BKW) share price went up 2.4%.

Volpara Health Technologies Ltd (ASX: VHT)

The Volpara share price went up 3.7% after announcing an acquisition.

Volpara is acquiring CRA Health, which is based in Boston, for US$18 million. CRA's software is integrated with the major electronic health record (EHR) and genetics companies.

CRA receives patient information, including breast density, and returns the risk of breast cancer alongside appropriate recommendations, including whether additional imaging or genetics testing is advised and reimbursed according to established guidelines. CRA also has electronic interfaces built with all the major genetics companies.

Volpara said that CRA is profitable, with annual recurring revenue (ARR) of over US$4 million, average revenue per user (ARPU) of US$1.70 and coverage of around 6% of US breast screenings.

After this acquisition, Volpara will have ARR of around $US$17.5 million and at least one product in use in over 30% of US breast screenings. Group ARPU will increase to over US$1.40.

Credit Corp Group Limited (ASX: CCP)

The Credit Corp share price went up 8.8% today after reporting its FY21 half-year result.

The debt collector reported that its net profit after tax (NPAT) grew by 10% to $42.3 million. Credit Corp's US purchased debt ledger (PDL) segment saw NPAT double to $8 million.

Credit Corp also reported a record half-year PDL investment which was driven by the Collection House Limited (ASX: CLH) investment.

The ASX 200 company said that there had been a strong recovery in consumer lending volume over the December quarter.

It upgraded its full year outlook to a range of $85 million to $90 million, up from the previous range of $70 million to $85 million. The company said that it has $400 million of net cash and undrawn credit lines, putting it in a strong position to invest further.

Temple & Webster Group Ltd (ASX: TPW)

The online furniture retailer announced its FY21 half-year result. The Temple & Webster share price fell 4%. 

The company's revenue increased by 118% year on year to $161.6 million. It generated $14.8 million of earnings before interest, tax, depreciation and amortisation (EBITDA), which was growth of 556%.

The business said that its active customers increased by 102% and in the trade and commercial division it saw growth of 89% year on year.

In terms of cashflow and the balance sheet, it ended with a cash balance of $85.7 million (including proceeds from the $40 million placement) and it was cashflow positive.

Temple & Webster CEO Mark Coulter said: "While 2020 remained a challenge for the country, we are proud that many Australians continued to turn to Temple & Webster for their furniture and homewares needs. It is great to see our revenue growth translating into operating leverage and significant profit growth. This allows us to accelerate our investment into areas such as data, technology, private label and brand awareness to further differentiate our proposition."

The post ASX 200 jumps 1.5%, RBA doubles QE, Afterpay soars appeared first on The Motley Fool Australia.

Here are some of the highlights on the ASX today:

Link Administration Holdings Ltd (ASX: LNK)

The Link share price fell by 13.5% after making an announcement today regarding the takeover offer.

A month ago the company received a conditional, non-binding indicative takeover proposal from SS&C Technology Holdings to acquire 100% of the shares in Link.

However, on 3 January 2021, Link received a letter from SS&C stating it has withdrawn its takeover offer.

The Link board said it will continue to consider all alternatives to maximise value for shareholders. One of the things that Link is considering a potential separation through a merger of its interest in Torrens Group Holdings (TGH) (and its core asset, PEXA). Link will also explore a trade sale of its interest in TGH from 18 January 2021.

Collection House Limited (ASX: CLH)

The Collection House share price fell around 60% today after finally coming out of a trading halt.

It announced that the transaction to recapitalise the business had completed. It has gathered $218.7 million, comprising $148.5 million from the sale of purchase debt ledgers, $15 million from a working capital loan facility and $55.2 million from new senior debt facilities.

Most of that money ($197.2 million) will be used to repay existing senior debt facilities, $6.2 million will be used for refinancing and restructuring costs and $15.3 million will be used for general corporate purposes.

Collection House said that the total consideration for the purchased debt portfolio to Credit Corp Group Limited (ASX: CCP) was determined at the transaction cut-off date of 30 September 2020. The purchaser was entitled to cash received from the PDL portfolio between 1 October 2020 and the settlement date of 31 December 2020, net of an adjustment equivalent to an arms-length collection fee.

Collection House is also entitled to a maximum of $15 million additional consideration from the purchaser, over an eight year period, dependent upon the future performance of the relevant PDL assets.

Further consideration of approximately $3 million to $4 million may be obtained from accounts excluded from the PDL portfolio at the time of settlement and is expected to be potentially received in January 2021, subject to obtaining further individual vendor consents. These funds will be applied in reduction on the company's new senior debt facilities.

However, the parties received an inquiry from the Australian Competition and Consumer Commission (ACCC) regarding the transaction and have responded to that inquiry. Collection House will continue to assist the ACCC with any further inquiries.

The Credit Corp share price went up by 3.7% today. 

The post ASX 200 rises 1.5% appeared first on The Motley Fool Australia.

At the time of writing, the debt collection company's shares are up over 1% to $30.06.

The same cannot be said for the Collection House share price. Its shares have returned to trade for the first time since February 2020 and are down 66% to 44 cents this afternoon.

What is happening?

Just before Christmas, Credit Corp announced that it would acquire the Australian PDL book of Collection House for approximately $160 million. This was the largest single PDL purchase in Credit Corp's history according to its CEO, Thomas Beregi.

Under the terms of the agreement, Collection House can receive a portion of the collected funds that Credit Corp recovers. This is on the proviso that Credit Corp achieves above the level required to have a return on its investment.

This deal was made as part of the recapitalisation process for Collection House. The proceeds from the transaction were to be immediately applied to reduce its senior debt.

After which, Collection House's existing lenders agreed to provide a new three-year senior debt facility of approximately $45 million on commercial terms and Credit Corp has provided it with a short term loan of $15 million for general corporate purposes.

What now?

While the deal with Credit Corp is technically complete, Collection House has revealed that it received an inquiry from the Australian Competition & Consumer Commission (ACCC).

The release explains that the ACCC has made an inquiry regarding the transaction and the company has responded to it.

No further details were given, but Collection House advised that it will continue to assist the ACCC with any further inquiries.

The post Credit Corp (ASX:CCP) share price up 1% but Collection House (ASX:CLH) crashes 66% lower appeared first on The Motley Fool Australia.

At the time of writing, the Credit Corp share price is up 19% to $29.70.

What's driving the Credit Corp share price higher?

According to its release, Credit Corp advised that it will acquire the Australian purchased debt ledger (PDL) book of Collection House Limited (ASX: CLH).

Collection House is a credit management agency that specialises in commercial debt recovery and outsourced credit control.

The book value of the transaction is estimated to be around $160 million. Credit Corp, however, will provide Collection House with an additional short-term loan of $15 million. The loan is due to be repaid back within 9 months and is secured against Collection House's tax receivables.

The total amount of the deal is subject to minor adjustments including costs associated with the transaction. Credit Corp therefore estimates it will have a net expense of $150 million from the acquisition. This will be funded by the company tapping into its existing cash reserves, without the need to draw down on loan facilities.

The transaction is expected to be completed by the end of the current calendar year.

Under the terms of the agreement, Collection House is able to receive a portion of the collection funds that Credit Corp recovers. This is provided that Credit Corp achieves above the level required to have a return on its investment. Pleasingly, the book that will be acquired includes ongoing payment arrangements to the value of almost $200 million.

Words from the CEO

Commenting on the transaction, Credit Corp CEO Mr. Thomas Beregi said:

Acquisition of Collection House's Australian book will be the largest single PDL purchase in Credit Corp's history.

Even after this acquisition, Credit Corp will retain almost $400 million in available cash and funding lines to deploy as and when suitable investment opportunities arise across all of its segments.

Revised guidance

With the deal due to be wrapped in the coming days, Credit Corp revised its guidance for 2021. The company is forecasting its current financial year earnings to grow by $10 million in net profit after tax. This brings the adjusted net profit after tax between $70 million to $85 million, which is an increase on the previously projected net profit after tax of $60 million to $75 million.

Credit Corp said it will update shareholders on its operational performance at its half-year results release on 2 February 2021.

At the time of writing, the Credit Corp share price is up almost 20% in morning trade, giving it a current market cap of $1.67 billion.

The post Why the Credit Corp (ASX:CCP) share price is surging 19% higher today appeared first on The Motley Fool Australia.

It's a new decade, and to celebrate, we asked our Foolish writers to pick their favourite ASX shares to buy in January 2020.

Here is what they came up with…

Brendon Lau: Worley Ltd (ASX: WOR)

The Worley Ltd share price continues to trade at a discount to its peers and its historical valuation even as the stock recovered recently. Investors are probably marking Worley down on worries about the oil and gas engineering group's ability to bed down the massive Jacobs' ECR business.

But I don't think things are as difficult as some investors believe and the stock could re-rate during the February reporting season.

Motley Fool contributor Brendon Lau owns shares of Worley Ltd.

James Mickleboro: Telstra Corporation Ltd (ASX: TLS)

The Telstra share price was a disappointing performer in the 2010s due to the significant disruption to its core business caused by the NBN.

However, with the NBN rollout gathering pace and "peak NBN pain" expected in FY 2021, I'm optimistic that the telco giant's performance in the 2020s will be much stronger. Especially given the arrival of 5G internet, the return of rational competition in the telco market, and its T22 strategy. The latter is stripping out billions of dollars in costs and positioning Telstra for a return to growth in the near future.

Motley Fool contributor James Mickleboro has no financial interest in Telstra Corporation Ltd.

Nikhil Gangaram: AP Eagers Ltd (ASX: APE)

I think AP Eagers could see some upside in January.

The AP Eagers' share price has been sold down recently after AP the company warned the market that external conditions could impact earnings. However, the challenging automotive sector could be bottoming and experience a revival in the new year.

AP Eagers is well poised to take advantage of improved trading conditions after the company acquired market leader Automotive Holdings Group (AHG) earlier this year. The acquisition of Automotive Holdings provides AP Eagers with exposure to a further 27 car brands and 10 truck/bus brands.

Motley Fool contributor Nikhil Gangaram has no financial interest in AP Eagers Ltd.

Sebastian Bowen: MFF Capital Investments Ltd (ASX: MFF)

My first pick for 2020 is MFF Capital Investments.

MFF is a LIC that invests in quality US stocks such as Alphabet (Google), Mastercard, Visa and Coca-Cola. I hold it in my own portfolio for some easy but much-needed exposure to the US markets – home to some of the best companies in the world.

MFF performed exceptionally well in 2019 (delivering a return north of 40%) and also pays a small but growing dividend. I'll be looking to add some more to my MFF position this year and am confident it's a stock I'll be holding for the entirety of the new decade.

Motley Fool contributor Sebastian Bowen owns shares of MFF Capital Investments Ltd.

Tristan Harrison: Pushpay Holdings Ltd (ASX: PPH)

Pushpay is a donation payment business that enables people to electronically give money to not-for-profit organisations.

The company's main clients at the moment are churches in the US, which sees an attractive level of donations given every year – giving useful, essentially annual, revenue to Pushpay.

Pushpay announced an acquisition last month, a church management system. It diversifies Pushpay's earnings and but more importantly, it means the combined business can offer a stronger offering to customers.

I think the organic growth plus the acquisition could lead to good revenue growth for Pushpay, particularly with an increase of revenue per client.

Motley Fool contributor Tristan Harrison has no financial interest in Pushpay Holdings Ltd.

Michael Tonon: Nearmap Ltd (ASX: NEA)

After the recent fireworks of New Year's Eve, I think the Nearmap share price also has the potential to rocket higher in January 2020.

It's pleasing to see the growth profile of Nearmap's expansion into the far larger North American market accelerating beyond what it achieved in its profitable Australian business when compared over the same base year.

This growth trajectory and management's determination for further global expansion give Nearmap a bright future in my eyes. Coupled with Nearmap's share price being down meaningfully from its high of $4.29, I think January could be an optimal time to buy.

Motley Fool contributor Michael Tonon owns shares of Nearmap Ltd.

Phil Harpur: Appen Ltd (ASX: APX)

This hi-tech company is, in my opinion, the pick of the WAAAX bunch. Appen Ltd provides data for use in machine learning and artificial intelligence throughout the globe.

Appen continues to experience incredibly strong demand from many of the largest global technology firms. This has translated into very high revenue growth, assisted by recent acquisitions. In particular, its recently acquired Figure Eight business continues performing well.

I believe Appen is very well placed to see continued strong growth during 2020 and through to 2030, due to the rapidly rising demand for Artificial Intelligence (AI) products and machine learning markets.

Motley Fool contributor Phil Harpur owns shares in Appen Ltd.

Giacomo Graziano: Collection House Limited (ASX: CLH)

Collection House's operations focus on the management of receivables, credit, and collection services in Australia, New Zealand, and the Philippines. In times of widespread economic difficulties, this is a good line of work to be in.

However, what stands out most about Collection House is its valuation. With a P/E of 5.5, the market is pricing its shares as if it is about to go out of business. Further, Collection sports a generous fully franked 7.8% dividend yield, which is well-covered by earnings and set to grow by 8.8% for the next 2 years.

Giacomo Graziano has no financial interest in Collection House Limited.

Kenneth Hall: Macquarie Group Ltd (ASX: MQG)

The Macquarie share price has been soaring higher in 2019 and is my top pick in the ASX banking sector.

Macquarie shares are up 30.15% this year and are still yielding 4.39% per annum.

Given the struggles for the Big Four retail banks, Macquarie has been a beacon of stability this year.

I think Macquarie Group offers a strong dividend with diversified earnings potential for 2020.

Motley Fool contributor Kenneth Hall has no financial interest in Macquarie Group Ltd. 

The post Top ASX stock picks for January 2020 appeared first on The Motley Fool Australia.

On November 24 the group surprised the market by announcing the resignation of its CEO Anthony Rivas. 

I spoke to Mr Rivas a couple of times and he was an ebullient character, but the abrupt departure suggests he did not see eye to eye with a board that immediately promoted CFO Doug McApline to the role.

Mr McAlpine has only been with Collection House since July 2019, while Mr Rivas was in the role just over three years.

Generally, a high turnover of 'C-suite' staff or staff generally at any company is a sign that there may be problems at the underlying business. High staff turnover also makes it harder for a business to perform well, as, inter alia, it reduces productivity and adds to costs.

Over FY 2109 Collection House paid dividends of 8.2 cents per share on adjusted earnings of 15.2 cents per share. It's guiding for adjusted earnings between 17 to 18 cents per share over FY 2020. 

That means it sells for just 6x forecast earnings at $1.06 this afternoon. It's also likely to offer a pretty big yield based on forecast earnings.

It's worth nothing though that debt collection businesses traditionally trade on low multiples due to the limited visibility of earnings that are vulnerable to volatile debt pricing environments. 

The post Collection House shares just hit a 52-week low appeared first on The Motley Fool Australia.

Four shares that have failed to follow the market higher are listed below. Here's why they are tumbling lower:

The Cann Group Ltd (ASX: CAN) share price has crashed 22.5% lower to 57 cents. Late last week the cannabis company revealed that it would be staging the commissioning of its Mildura facility in response to weaker demand. Investors appear concerned that Cann Group may never generate the level of revenue it forecast previously.

The Collection House Limited (ASX: CLH) share price is down 6% to $1.14. Investors have been selling the receivable management company's shares after it announced the sudden departure of its managing director and chief executive officer, Anthony Rivas. Collection House revealed that it has promoted CFO Doug McAlpine to the top job with immediate effect.

The Nufarm Limited (ASX: NUF) share price is crashing lower on Monday and is down 18% to $5.07. Investors have been selling its shares due to a costly accounting error. When reconciling accounts with German customers for the 2019 calendar year, Nufarm identified additional sales rebate claims from customers. This is expected to result in a $9 million impact to its first half EBITDA. In addition to this, it warned that trading conditions have been difficult in FY 2020.

The Wagners Holding Company Ltd (ASX: WGN) share price is down 7% to $2.04. This morning the building supplies company provided an update on its dispute with Boral Limited (ASX: BLD). According to the release, Wagners was expecting a resolution of its dispute with Boral in court this week. However, the trial has been adjourned until February.

The post Why Cann, Collection House, Nufarm, & Wagners shares are tumbling lower appeared first on The Motley Fool Australia.

In morning trade the receivable management company's shares are down 6% to $1.14.

Why is the Collection House share price sinking lower?

Investors have been selling Collection House's shares on Monday after it announced the sudden departure of its managing director and chief executive officer.

According to the release, Anthony Rivas has tendered his resignation, effective from November 24. This ends his three-and-a-half association with the company.

Judging by the share price reaction today, the market appears concerned by the news. Whilst a change of CEO often doesn't go down well with investors, the sudden nature of this change seems to have spooked them.

New CEO appointed.

The company has acted swiftly to replace the outgoing Mr Rivas. It has revealed that its chief financial officer, Doug McAlpine, will take on the role of chief executive officer with immediate effect.

Collection House chairman, Leigh Berkley, spoke positively about the new chief executive and appears confident the company is in safe hands.

Mr Berkley said: "Doug has already made a strong contribution to the business, and I am sure that as CEO he will play a pivotal role in taking the company forward to providing even better outcomes for our people, our customers and clients, our shareholders, and the wider community."

The company's new CEO appears up for the challenge. Mr McAlpine said: "I'm delighted to be taking on this new challenge at Collection House and look forward to working with the Board and our exceptional Leadership Team to build on the important work that Anthony has already started. There is significant work to do, but with a focus on improving customer experience and creating a deeper level of engagement with our people, I am confident that we can become an even better business."

Also falling heavily on Monday is the Nufarm Limited (ASX: NUF) share price after an accounting error and the Cann Group Ltd (ASX: CAN) share price on no news.

The post Why the Collection House share price is sinking lower today appeared first on The Motley Fool Australia.

The changes and their consequences for the business are complex but effect when the company recognises profits from its estimated cash flows on purchased debt ledger books and discount rates used to estimate the future value of cash flows.

As a result of the changes the company has been forced to apply a higher discount rate, which reduces the present value of future cash flows and in turn net profit.

The post Why Pioneer Credit shares remain halted despite it reporting a full year profit appeared first on The Motley Fool Australia.

Almost every short in that stock will be nursing heavy losses now with little option other than to close the position or pray that the takeover offer fails to go ahead for one reason or another. 

So while shorts can be spectacularly wrong, it's still worth taking a look at what businesses many market participants are confident will fall in value. Below are four heavily shorted businesses. All data accurate as at September 17 according to ASIC. 

Blackmores Limited (ASX: BKL) is the vitamins manufacturer and retailer that has 9.7% of its scrip shorted. Sales into China have slowed down over the first half of calendar 2019 and short sellers may be betting this is a structural issue. The stock is also arguably on a high valuation given it's struggling to deliver consistent profit growth. 

Collection House Limited (ASX: CLH) is the purchased debt ledger collection business with 7.7% of its shares shorted. It has a mixed track as a public business and recently invested $8.5 million in "neo-bank" Volt Bank under its ebullient new CEO. Short sellers seem unconvinced though. 

Domino's Pizza Enterprises Ltd (ASX: DMP) is the pizza franchisor that recently abandoned 12 month profit guidance in favour of more general long term targets over same-store sales growth and new store openings. Short sellers are sceptical with 10.1% of the scrip shorted. 

IOOF Holdings Limited (ASX: IFL) has 9.5% of its scrip shorted and its 21% share price rise since Friday on the back of a legal victory illustrates the risks around shorting. For short sellers scrambling to cover on good news losses can be magnified as they have to compete with 'long only' buyers to get their hands on rising stock as sentiment suddenly improves. 

The post Warning: These 4 shares are being heavily shorted appeared first on The Motley Fool Australia.

Four shares that have failed to follow the market higher today are listed below. Here's why they have tumbled lower:

The Collection House Limited (ASX: CLH) share price has fallen 4% to $1.16 after it was the subject of a bearish broker note out of Morgans. According to the note, the broker was disappointed with its full year results and has downgraded its shares to a reduce rating and slashed the price target on them to $1.09. It noted that the company's profit result benefited from lower amortisation and would have been down by over a third had the levels been the same as in FY 2018.

The Medibank Private Ltd (ASX: MPL) share price is down almost 2.5% to $3.53 after the ACCC announced that it has launched court proceedings against the private health insurer. The competition watchdog alleges that Medibank falsely represented to members holding ahm Lite or ahm Boost policies that they were not entitled to cover for joint investigations or reconstruction procedures, when in fact their policies covered these procedures.

The Moelis Australia Ltd (ASX: MOE) share price has dropped 3% to $3.71 after it entered into a binding buyback agreement with US-based Moelis & Company to purchase 8 million MOE shares via a selective buyback at a price of $3.40 per share. This represents approximately 5.1% of the company's issued share capital and will be subject to shareholder approval. This will ultimately lead to Moelis Australia no longer being regarded as a foreign corporation under Australian law, which provides benefits of reduced costs, administrative burden, and improved corporate flexibility.

The Spark Infrastructure Group (ASX: SKI) share price has fallen 4% to $2.22. The catalyst for this decline has been the utility infrastructure company's shares trading ex-dividend this morning for its 7.5 cents per share interim dividend. This dividend will now be paid to eligible shareholders on September 13.

The post Why Collection House, Medibank, Moelis, & Spark shares tumbled lower today appeared first on The Motley Fool Australia.

Unfortunately, not all shares are in favour with brokers right now. The three shares listed below have all just been given sell ratings. Here's why they are bearish on them:

Collection House Limited (ASX: CLH)

According to a note out of Morgans, its analysts have downgraded this receivables company's shares to a reduce rating and slashed the price target on them to $1.09. Its analysts were disappointed with Collection House's performance in FY 2019 and note that its profits were inflated by lower amortisation. It estimates that its profits would have been down by over a third if adjusted for the same level of amortisation in FY 2018. Overall, it remains bearish on its outlook and feels there is a lot of downside risk with its shares. Collection House's shares are trading almost 4% lower at $1.17 today.

Galaxy Resources Limited (ASX: GXY)

A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and cut the price target on this lithium miner's shares to $1.10. According to the note, although Galaxy posted a small profit in the first half of FY 2019, the broker's focus was on its significant drop in revenue from weak lithium prices. Furthermore, following the impairment of the Mt Cattlin operation, Macquarie has reduced its valuation of Galaxy's James Bay asset, ultimately leading to a reduction in its price target. Galaxy's shares are trading flat at $1.12 on Tuesday.

Harvey Norman Holdings Limited (ASX: HVN)

Analysts at Morgan Stanley have retained their underweight rating and $3.20 price target on this retailer's shares following the release of its full year results. According to the note, Harvey Norman's earnings fell short of the broker's expectations. In light of this, it continues to remain bearish on the company and sees more value elsewhere in the industry. Harvey Norman's shares are up over 1% to $4.48 on Tuesday.

The post Leading brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.

Here's a short recap of the Australian market:

• S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) higher 1.49% to 6,604.20
• ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) higher 1.40% to 6,698.20
• AUD/USD at US 67 cents
• Gold at US$1,527.52 an ounce
• Brent Oil at US$60.97 a barrel

The best-performing ASX 200 share today was the ship building business Austal Limited (ASX: ASB), investors were pleased with its FY19 report.

The share price of Splitit Ltd (ASX: SPT) rocketed higher by 37.5% after the market learned of the growth numbers in its FY19 result.

The Appen Ltd (ASX: APX) share price recovered 6.8% today with investors seeing an opportunity.

The Harvey Norman Holdings Limited (ASX: HVN) share price dropped 6.2% after reporting its FY19 result.

The share price of Sezzle Inc (ASX: SZL) fell 1.2% after the buy now, pay later company reported its result.

Another business to see its share price react to a report today was Freedom Foods Group Ltd (ASX: FNP) which rose 25.3%.

Debt collector Collection House Limited (ASX: CLH) saw its share price climb 10.5% after a pleasing FY19 report.

Finally, the share price of Resolute Mining Limited (ASX: RSG) decolined around 3% despite a solid report.

Here are some of today's top stories:    

• Experience Co share price rockets 20% higher after hitting its FY 2019 guidance
• BlueScope share price flat despite ACCC alleging serious cartel behaviour
• Is the BHP share price a buy?
• 3 lessons to be learnt from the August reporting season

The post ALL ORDINARIES finishes higher Friday: 8 shares you missed appeared first on The Motley Fool Australia.

In afternoon trade the receivable management company's shares are up 11% to $1.22 following the release of its full year results.

How did Collection House perform in FY 2019?

Despite challenging trading conditions for both the Collection Services and PDL segments, Collection House delivered a net profit after tax of $30.7 million on revenues of $161.1 million. This was a 18% and 12% increase, respectively, on the prior corresponding period.

Earnings per share came in 16% higher at 22.3 cents, allowing the board to pay a full year dividend of 8.2 cents per share fully franked. This was a 5% increase on FY 2018's dividend.

What were the drivers of this result?

The star of the show for Collection House was its Purchased Debt Ledger (PDL) Segment. It achieved revenue of $93.7 million, which was a 25% increase on the prior corresponding period. PDL purchases are expected to be lower in FY 2020, with management providing guidance of $80 million to $100 million. This compares to $133 million in PDL purchases in FY 2019.

The PDL Segment's strong performance offset a soft year for its Collection Services Segment. It reported a 2% decline in revenue to $67.6 million due to the negative impact that the Federal Election and the Royal Commission had on client activity. The good news is that the segment has had a positive start to FY 2020 and is trading more in line with FY 2018 levels.

The company's managing director and CEO, Anthony Rivas, had mixed feelings over its performance in FY 2019.

He said: "We met our guidance, however, the business is still not at the level we expected with Cash Collection initiatives not delivering until late in the period, and the Collection Services division disrupted by external factors. Further work is required to ensure we are maximising every opportunity to engage with customers and work collaboratively to remedy their financial circumstances. Pleasingly, our process and technology initiatives are delivering improvements, initial evidence of which is apparent post year end, and this underpins our new PDL cash collections guidance for FY20."

In FY 2020 the company expects PDL cash collections to be in the range of $145 million to $155 million, which is an increase ~16% on FY 2019 collections.

Also rising strongly on the All Ordinaries today are the shares of Experience Co Ltd (ASX: EXP) and Freedom Foods Group Ltd (ASX: FNP). They are both up around 25% this afternoon after the market responded very positively to their respective releases.

The post Collection House shares race 11% higher after posting solid dividend and profit growth appeared first on The Motley Fool Australia.

Here's a short recap of the Australian market:

• S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) higher 0.40% to 6,217.40
• ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) higher 0.46% to 6,302.50
• AUD/USD at US 71 cents
• Gold at US$1,296.65 an ounce
• Brent Oil at US$65.35 a barrel

The best-performing ASX 200 share today was organic formula business Bellamy's Australia Ltd (ASX: BAL) again, which went up 12%.

Another strong performer was Bingo Industries Ltd (ASX: BIN) with the company announcing a share buy-back at the same time as getting approval for its acquisition last week.

The share price of IT wholesaler Dicker Data Ltd (ASX: DDR) rose another 4.1% today with the company providing market guidance for 2019.

Shares of Afterpay Touch Group Ltd (ASX: APT) have increased by another 2.2% today as it finished at $20 again.

The Crown Resorts Ltd (ASX: CWN) share price finished up 0.4% with the company not getting financing for the One Queensbridge project.

The share price of Metcash Limited (ASX: MTS) rose 2.7% due to releasing a trading update to the market.

Fortescue Metals Group Limited (ASX: FMG) shares also went up today, the miner rose 6.9%.

Finally, debt collector company Collection House Limited (ASX: CLH) ended the day down 1.8% after announcing an acquisition.

Here are some of today's top stories:

• Here's how to beat Warren Buffett at investing
• Are CBA, Westpac, ANZ and NAB about to leave New Zealand?
• Read this before buying FlexiGroup Limited shares for its dividend
• Why the CSL share price is touching $200 again

The post ALL ORDINARIES finishes higher Monday: 8 shares you missed appeared first on The Motley Fool Australia.

• Revenue of $66m, up 4%
• Net profit after tax of $8.5m, up 3%
• "Underlying profit after tax" of $8.7m, up 2%
• Earnings per share (EPS) of 6.2 cents
• Dividends per share of 4.1 cents
• Made a $8.5 million equity investment in start-up bank Volt Bank
• Acquired NZ-based Receivables Management Limited for NZ$14.1m
• Drawn debt of $153m
• FY 19 EPS guidance of 19.2 to 19.5 cents per share, or 15 to 15.2cps excluding 'PEP' transactions

The Collection House share price is up 1.4% to $1.42 on the back of a busy quarter for Collection House and its ebullient North American CEO Anthony Rivas.

The core debt collection business delivered flattish results but generally ticked in the right direction, with the group even increasing its purchased debt ledger guidance around 12% to a record $87m to $92m for fiscal 2019.

As such meeting its earrings per share guidance looks reliant on the group delivering a stronger second half to the year.

It also completed an NZ-acquisition and slightly left-field $8 million equity investment in Volt Bank that it would be interesting to get more of an explanation over, as so far it's been light on detail other than talk around bringing new products to market that could help the financially challenged.

The stock looks cheap on conventional valuation metrics if you expect it to meet full year earnings guidance and except the backing out of certain costs in achieving that guidance.

It also offers a handy dividend and possesses a new management team that talks a good game, while delivering will be the key for investors.

Another stock in the debt collection space that has delivered superb returns for shareholders is Credit Corp Group Ltd (ASX: CCP), as such this suggests Collection House is in a reasonable space.

The post Profit report: Is the Collection House share price cheap? appeared first on The Motley Fool Australia.

Here's a short recap of the Australian market:

• S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) lower 0.54% to 5,858.80
• ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) lower 0.49% to 5,924.30
• AUD/USD at US 71 cents
• Gold at US$1,278.99 an ounce
• Brent Oil at US$62.03 a barrel

The best-performing ASX 200 share today was resources business Syrah Resources Ltd (ASX: SYR), its share price rose 5.7%.

Shares of retail business Super Retail Group Ltd (ASX: SUL) went up 2.75% after announcing who the new CEO will be.

The BHP Group Ltd (ASX: BHP) share price fell 1.3% today after it gave the market its December 2018 production update.

Resource business Oil Search Limited (ASX: OSH) also fell 2.8% after giving investors its fourth quarter report.

The share price of Collection House Limited (ASX: CLH) rose 1.9% due to announcing it had made a strategic $8.5 million investment in Volt.

Shares of TPG Telecom Ltd (ASX: TPM) ended the day down 0.6% with the ACCC supposedly delaying the date on which it will hand down its final verdict of the TPG-Vodafone Australia merger.

The worst performer in the ASX 200 today was car dealership business Automotive Holdings Group Ltd (ASX: AHG), its share price fell 4.2%.

Finally, the Commonwealth Bank of Australia (ASX: CBA) share price dropped 1.2%, perhaps because the final report from the Royal Commission is due next week, but also perhaps because Volt Bank received APRA clearance to start receiving deposits from the public. Morgan Stanley thinks the CBA dividend is at risk of being cut.

Here are some of today's top stories:

• Why this top broker upgraded the Brambles share price to "buy"
• Brands are great. But how much are they really worth?
• Afterpay tells Senate inquiry it doesn't want broke customers
• 2 ETFs to buy for wealth through simple investing

The post ALL ORDINARIES finishes lower Tuesday: 8 shares you missed appeared first on The Motley Fool Australia.

Volt is the first start-up entity to be a granted a banking license in Australian since 1981 and a potential initial public offer candidate itself one day, although first it will have to prove itself as a credible bank offering services to consumers in a competitive space.

Volt has reportedly already raised around $45 million from Tier 1 venture capital style funding, with the strict capital adequacy requirements imposed on banks (to guarantee them being able to meet liabilities) likely one of its toughest obstacles to becoming an operating success.

"This investment is part of Collection House's ongoing digital transformation strategy, and we are delighted to be working closely with Volt Bank to deliver some real benefits to our customers,"  Collection House's chairman Leigh Berkley commented.

Its CEO Anthony Rivas also claimed the deal would mean Collection House "can expand its collection services and analytical services divisions to offer new and innovative financial products and services to its customers".

Mr Rivas also claimed the deal has the potential to help Collection House deliver an additional $3 million in profit in FY 2020, although no real detail was provided as to how the group anticipated making this kind of profit from the investment.

It could be via either equity appreciation or cash flow, although that would be a spectacular return on invested capital off an $8.5 million investment. And everyone will be hoping Collection House doesn't end up collecting Volt's bad debts.

For its part Volt claimed the deal would help the pair collaborate on new technologies in particular "the digitisation of hardship identification".

In all honesty a debt ledger collection business and start-up bank don't look natural bedfellows, with the success of the deal primarily looking linked to Volt's standalone performance, even if Collection House and its ebullient CEO do have some good data analytic technologies it can share with Volt.

As such Collection House investors are likely to want more information on the rationale behind the investment prior to sending the share price higher.

Another debt collection business on the ASX for investors to watch is Credit Corp Limited (ASX: CCP), which has a more consistent track record than Collection House, but higher valuation to boot.

The post Why Collection House is investing $8.5 million in digital bank start-up Volt appeared first on The Motley Fool Australia.

Three shares at the small end of the market that have caught the eye with strong gains today are listed below. Here's why they are on the rise on Thursday:

The Collection House Limited (ASX: CLH) share price has climbed 5.5% to $1.35 on the day of its annual general meeting. Ahead of the meeting the receivables management company announced a strategic alliance with Volt Bank aimed at delivering innovative and ethical financial services and products to customers. In addition to this, management reiterated its FY 2019 guidance for earnings per share between 15.2 cents and 15.5 cents. Positively, it now expects to achieve the high end of this range.

The Redbubble Ltd (ASX: RBL) share price has bounced back from a selloff on Wednesday with a 10% gain to $1.02. The ecommerce company's shares crashed lower yesterday after it revealed that changes to Google search algorithms had impacted its organic search sales by 3% year on year. This morning a note out of Goldman Sachs revealed that it has held firm with its buy rating and $1.95 price target despite this blip. While the broker acknowledges that there are short term risks, its positive investment case is built around the long-term outlook which remains unchanged.

The Silver Chef Limited (ASX: SIV) share price is 3% higher to $1.53 following the release of the equipment leasing company's AGM update. Within its trading update the company revealed that its bad debt levels for the first four months of FY 2019 are running at the target and historic level of between 2.5% to 3.5% of rental income. In addition to this, management said that it is confident that the many opportunities the company has in Australia, New Zealand and North America will deliver strong returns and value for shareholders.

The post Why these small cap ASX shares are on the rise on Thursday appeared first on The Motley Fool Australia.

In fact, the three small cap shares listed below have managed to post strong gains today in the face of the market selloff.

Here's why they are on the rise:

The Antipa Minerals Ltd (ASX: AZY) share price has rocketed 19% higher to 3.1 cents. This is the second day in a row of strong gains for Anitpa Minerals' shares following the release of a positive announcement yesterday. On Tuesday the mineral exploration company announced the commencement of an airborne electromagnetic (AEM) survey at the Citadel Project as part of the $60 million farm‐in agreement with Rio Tinto Limited (ASX: RIO). The Citadel Project is located in the prospective Paterson Province, 80 km north of the Newcrest Mining Limited (ASX: NCM) operated Telfer gold‐copper‐silver mine in northern Western Australia. Previous AEM surveys have resulted in several significant discoveries in the Paterson Province.

The Catapult Group International Ltd (ASX: CAT) share price has avoided the tech selloff and climbed 1.5% higher to $1.03. This afternoon the sport analytics and wearables company announced two partnerships in world football and a video coaching solutions deal with a new American Football league. Management believes that the three partnerships further showcase Catapult's global leadership in sports science innovation and technology. The two world football deals have seen New York City FC partner with its PLAYR business and the Confédération Africaine de Football (CAF) sign a deal with Catapult to supply its athlete monitoring technology to all 54 countries under its jurisdiction. The latter partnership will see 2,650 of Catapult's PLAYERTEK units supplied to CAF teams to help optimise performances.

The Collection House Limited (ASX: CLH) share price has pushed over 3.5% higher to $1.27 after an independent proxy adviser endorsed the board's AGM recommendations. CGI Glass Lewis has also recommended that shareholders reject all resolutions proposed by Lev Mizikovsky. Mr Mizikovsky is a disgruntled shareholder seeking to spill the board and elect two of his own nominees. The Collection House board made the move due to concerns that "shareholder returns and value are being put at risk due to the uncertainty created by Mr Mizikovsky and his ongoing and baseless assertions."

The post These small cap ASX shares have surged higher on Wednesday appeared first on The Motley Fool Australia.